Managerial Accounting: Creating Value in a Dynamic Business Environment
11th Edition
ISBN: 9781259569562
Author: Ronald W Hilton Proffesor Prof, David Platt
Publisher: McGraw-Hill Education
expand_more
expand_more
format_list_bulleted
Textbook Question
Chapter 12, Problem 27E
For each of the following organizational subunits, indicate the type of responsibility center that is most appropriate.
- 1. A movie theater in a company that operates a chain of theaters.
- 2. A radio station owned by a large broadcasting network.
- 3. The claims department in an insurance company.
- 4. The ticket sales division of a major airline.
- 5. A bottling plant of a soft drink company.
- 6. An orange juice factory operated by a large orange grower.
- 7. The College of Engineering at a large state university.
- 8. The European Division of a multinational manufacturing company.
- 9. The outpatient clinic in a for-profit hospital.
- 10. The Mayor’s Office in a large city.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solutionStudents have asked these similar questions
For each of the following managers, describe how managerial accounting could be used to satisfy strategic or operational objectives:1. The vice president of the Information Systems Division of a bank.2. A hospital administrator.3. The chief executive officer of a food company. The food company is divided into three divisions: Nonalcoholic Beverages, Snack Foods, and Fast-Food Restaurants.4. The manager of the local campus copy shop.
Need help for this question
1. Responsibility Centers
Indicate how each of the business situations below is most likely to be organized: cost center (CC), revenue
center (RC), profit center (PC), or investment center (IC)
A. The assembly department of Toyota Motors Corporation.
B. The Ayala Mall car park ticket outlets.
C. The Magnolia product division of San Miguel Corporation.
D. The accounting department of SM Malls.
E. The Project 8 branch of Starbucks Coffee.
F. The College of Accountancy of the España University.
G. The parts department of Suzuki Motors Corporation.
H. The convenience store (Mini-Stop) that is owned by a chain organization; the head office supplies all
the goods to be sold and determines the selling prices.
Chapter 12 Solutions
Managerial Accounting: Creating Value in a Dynamic Business Environment
Ch. 12 - Why is goal congruence important to an...Ch. 12 - Define and give examples of the following terms:...Ch. 12 - Prob. 3RQCh. 12 - Explain the relationship between performance...Ch. 12 - What is the key feature of activity-based...Ch. 12 - What is the key feature of activity-based...Ch. 12 - Prob. 7RQCh. 12 - Define and give examples of the following terms:...Ch. 12 - Give an example of a common resource in an...Ch. 12 - Explain how and why cost allocation might be used...
Ch. 12 - Define the term cost allocation base. What would...Ch. 12 - Referring to Exhibit 125, why are marketing costs...Ch. 12 - Prob. 13RQCh. 12 - Why do some managers and accountants choose not to...Ch. 12 - Why is it important in responsibility accounting...Ch. 12 - Prob. 16RQCh. 12 - Prob. 17RQCh. 12 - What is meant by customer profitability analysis?...Ch. 12 - List seven areas in which nonfinancial,...Ch. 12 - Define the term manufacturing cycle efficiency.Ch. 12 - Prob. 21RQCh. 12 - What is meant by aggregate productivity, and what...Ch. 12 - Prob. 23RQCh. 12 - Using the Internet, identity the organizational...Ch. 12 - Prob. 25RQCh. 12 - Explain how an improvement in employee retention...Ch. 12 - For each of the following organizational subunits,...Ch. 12 - Prob. 28ECh. 12 - Prob. 29ECh. 12 - Xerox Corporation has been an innovator in its...Ch. 12 - The following data pertain to the Waikiki Sands...Ch. 12 - Lackawanna Community College has three divisions:...Ch. 12 - Countywide Cable Services, Inc. is organized with...Ch. 12 - Prob. 35ECh. 12 - Prob. 36ECh. 12 - Prob. 37ECh. 12 - Prob. 39PCh. 12 - Prob. 40PCh. 12 - Prob. 41PCh. 12 - Rocky Mountain General Hospital serves three...Ch. 12 - Refer to the organization chart for Rocky Mountain...Ch. 12 - Prob. 44PCh. 12 - Buckeye Department Stores, Inc. operates a chain...Ch. 12 - Building Services, Co. (BSC) was started a number...Ch. 12 - Warriner Equipment Company, which is located in...Ch. 12 - Prob. 48PCh. 12 - MedTech, Inc. manufactures diagnostic testing...Ch. 12 - Prob. 50PCh. 12 - Cathys Classic Clothes is a retailer that sells to...Ch. 12 - Pacific Rim Industries is a diversified company...
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- For each of the following managers, describe how managerial accounting could be used to satisfy strategic or operational objectives: a. The vice president of the Information Systems Division of a bank. b. A hospital administrator. c. The chief executive officer of a food company. The food company is divided into three divisions: Nonalcoholic Beverages, Snack Foods, and Fast-Food Restaurants. d. The manager of the local campus copy shop.arrow_forwardPlease give answer of the questionarrow_forwardIn each of the following situations, identify which type of responsibility center is appropriate based on the decision-making authority the manager would possess: 1. The manager of the accounting department in Ford’s corporate office. 2. The sales manager of a Ford dealership. 3. The general manager of a Ford dealership. 4. The manager of Ford’s corporate division. 5. The production manager in a Ford plant. options: Cost Center Investment Center Profit Center Revenue Centerarrow_forward
- For each office or business segment, indicate which type of Responsibility Center it is: a. A retail location, such as the Apple Store b. A manufacturing division that manages its own facilities and production equipment c. Call center for a warranty claims processing d. Consulting department of an accounting firm e. Quality control department for a golf ball manufacturer PreviousNextarrow_forwardFor each office or business segment, indicate which type of Responsibility Center it is: a. Quality control department for a golf ball manufacturer b. Consulting department of an accounting firm c. A retail location, such as the Apple Store d. The sales department at an car dealership e. Maintenance department of a luxury resort ["", "", "", "", "", ""]arrow_forwardFor the following situations identify whether the description is a centralized or decentralized organization. A. the United States Navy B. Farahs Dominos franchise store C. Dominos Pizza D. Middies Furniture, which is divided into separate operating units, such as living room, kitchen, flooring E. the local community college, which has a single payroll department, a single administrative headquarters, and a single human resources department since it flattened its organization structure F. Conner Corporation, which promotes managers from within the organization whenever possible and which has formal training programs for lower-level managersarrow_forward
- Give an example of managerial accounting information that could help a manager make the following decision. The Miami-Dade County board of representatives is deciding whether to build an addition onto one of the county libraries.arrow_forwardGoodworks Software operates stores within five regions. Regional managers are held accountable for marketing, advertising, and sales decisions, and all costs incurred within their region. In addition, regional managers decide whether new stores will open, where the stores will be located, and whether the stores will lease or purchase the facilities. Store managers, in contrast, are accountable for marketing, advertising, and sales decisions, and costs incurred within their stores. Ideally, on the basis of this information, what type of responsibility center should the software company use to evaluate its regions and stores? (1) Regions; (2) Stores (1) Profit center; (2) Profit center (1) Profit center; (2) Revenue center (1) Investment center; (2) Cost center (1) Investment center; (2) Profit center (1) Profit center; (2) Cost centerarrow_forwardgive all full answeerarrow_forward
- Select all that apply Which of the following are examples of operating departments? (Check all that apply.) Multiple select question. Geography department at a university Production department at a manufacturing firm Custodial department at a service firm Surgery department at a hospitalarrow_forwardWhich of the following would most appropriately be evaluated as a “profit center”? Group of answer choices a)Maintenance operations for American Airlines b)A warehouse operation for Amazon c)A hotel restaurant that caters to both hotel guests and non-guests d)Sales division for a large publisherarrow_forwardRemember the four management functions? They are planning, organizing, leading, and controlling. Think of a job you have now or one you’ve had in the past. List the managerial activities you have done or observed. If you have never had a paid job, remember that it takes management skills to manage a home, run a baseball team, and lead a church group. Classify each activity of your job according to whether it involved planning, organizing, leading, or controlling. Please also include a short narrative substantiating the way in which you have clarified each activity. Please make sure to comment meaningfully on one other student's post: do you agree with their classifications? Is there anything you found surprising about their job and the activities involved?arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Managerial AccountingAccountingISBN:9781337912020Author:Carl Warren, Ph.d. Cma William B. TaylerPublisher:South-Western College PubAuditing: A Risk Based-Approach (MindTap Course L...AccountingISBN:9781337619455Author:Karla M Johnstone, Audrey A. Gramling, Larry E. RittenbergPublisher:Cengage LearningPrinciples of Accounting Volume 2AccountingISBN:9781947172609Author:OpenStaxPublisher:OpenStax College
- Financial And Managerial AccountingAccountingISBN:9781337902663Author:WARREN, Carl S.Publisher:Cengage Learning,Cornerstones of Cost Management (Cornerstones Ser...AccountingISBN:9781305970663Author:Don R. Hansen, Maryanne M. MowenPublisher:Cengage Learning
Managerial Accounting
Accounting
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:South-Western College Pub
Auditing: A Risk Based-Approach (MindTap Course L...
Accounting
ISBN:9781337619455
Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Publisher:Cengage Learning
Principles of Accounting Volume 2
Accounting
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax College
Financial And Managerial Accounting
Accounting
ISBN:9781337902663
Author:WARREN, Carl S.
Publisher:Cengage Learning,
Cornerstones of Cost Management (Cornerstones Ser...
Accounting
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Cengage Learning
GE McKinsey Matrix for SBU Strategies; Author: Wolters World;https://www.youtube.com/watch?v=FffD1Ze76JQ;License: Standard Youtube License